My maths book does not provide the formula for finding the depreciation and inflation in questions such as...
Q.1) A particular car has a new value of $32 000. If we assume a constant annual depreciation rate of 12% what will the value of the car be when it is 5 years old.
Q2) What steady annual rate of inflation would cause the value of an item to rise from $2500 to $18400 in 25 years.
Q3)A particular house has a current value of $350 000. If we assume a constant annual inflation rate of 4.8% what will the value of this house be 2 years from now.
What is the formula for these questions?
If the value of a a car was $20,000 and it suffers 5% deflation in one year, what is the value of the car at the end of the year?
If the value of a house is $100,000 and it experiences 3% inflation over one year, what is the value of the house at the end of one year?
Can you answer these? Just one year!